After Chapter 11 bankruptcy, iconic brand raises red flag on scams
It’s not just the bankrupt company issuing warnings, a key watchdog agency has its own scam alerts.
When a retailer, restaurant, or other public-facing company goes bankrupt, there are all sorts of ways for scammers to take advantage of potential customers.
In some cases, they set up fake websites designed to look like the retailer that’s going out of business. When that happens, people pay for items that don’t exist and will never get sent to them.
Related: Key toilet paper brand files Chapter 11 bankruptcy
There are also situations when scammers will do things like sell gift cards at a discount after the retailer has stopped accepting gift cards. That leaves the consumer having paid money for something that has no value.
If that happens, the company doing the liquidation sale, which is usually not the original retailer will not be sympathetic. It’s up to the consumer to protect themselves from scams like these.
